Currency Management by RBI involves ensuring adequate supply of clean banknotes in circulation. RBI operates through Currency Chests across banks and manages currency distribution via Regional Offices. In 2025-26, focus remains on infrastructure upgradation for efficient currency supply. RBI prints currencies through Security Printing and Minting Corporation of India Limited (SPMCIL) and Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). System includes automated note sorting, counterfeit detection, and digital tracking of currency lifecycle from printing to destruction.

Currency Management represents RBI's core operational function ensuring smooth monetary circulation across India's vast geography. The system operates through a three-tier structure: RBI as apex controller, designated bank branches as Currency Chests for storage and distribution, and Small Coin Depots for coin circulation. This infrastructure supports India's cash-dependent economy where physical currency remains dominant despite digital payment growth.

RBI's currency management involves forecasting demand based on festival seasons, agricultural cycles, and regional requirements. The process includes printing coordination with government mints, quality control through automated sorting machines, and anti-counterfeiting measures using advanced security features. Currency Chests maintain adequate stock levels while ensuring geographical distribution efficiency.

The 2025-26 focus on infrastructure upgradation reflects RBI's modernization drive, incorporating digital tracking systems and automated processing to reduce manual handling. This evolution supports India's transition toward cleaner note circulation, reduced operational costs, and enhanced security against counterfeiting. The system's efficiency directly impacts monetary policy transmission and public confidence in the currency system.